Oliver Co. manufactures and sells product Z. The company uses a standard marginal costing system to set budgets andoperates a zero-stock policy, i.e., all units produced are sold.

Budgeted and actual results for June 2021 are provided below:

Budget Actual Production and sales (units) 6,000 6,400 f f Sales Revenue 384,000 384,000 Direct Material 33,600 44,800 Direct Labour 54,000 64,000 Production Overhead 118,000 93,800 Profit 178,400 181,400 O